According to Deribit data, the ratio of put options to call options for Bitcoin options open interest contracts expiring this Friday has risen to over 1, signaling bearish sentiment in the market. A ratio above 1 means that the number of open put options is significantly higher than call options, indicating that more investors are betting or hedging against a price decrease rather than an increase.
Deribit data shows that among the options expiring this Friday, the largest cluster of open contracts is for put options with a strike price of $58,000. Additionally, there are also a significant number of put options with strike prices of $52,000 and $48,000.
Bitcoin options traders have increased their bets on further declines. In a report on Monday, asset management company ETC Group stated that implied volatility of Bitcoin options has increased during recent price declines, with the implied volatility of at-the-money Bitcoin options expiring in one month reaching 50.5%. The term structure of volatility has also inverted, with short-term options having significantly higher implied volatility than long-term options, reflecting the market’s heightened concern and demand for protection against near-term Bitcoin price volatility.